The two, who have been sparking relationship rumours for weeks now, were spotted having a fun night out with Hadid's friends in New York City on Tuesday night.

The duo, who sported matching casual T-shirts for their outing, spent time with her friends at Justin Theroux's new bar Ray's on the Lower East Side of Manhattan.

"Gigi walked in first holding hands with her girlfriend. Behind her was Tyler and Gigi's friend Cully Smoller," an eyewitness told E! News.

"They all seemed to get on great. They walked in laughing together and talking loudly. They all had a great time and were very animated as they sat around laughing and talking," the eyewitness added.

"They stayed for almost two hours before leaving. Gigi and her girlfriend walked out first and Tyler was behind them. They walked for a little bit and then hailed a cab," the eyewitness shared.

According to the insider, Tyler and Gigi were "playing it cool" and "didn't want to get too close."

"But he held the door of the cab as everyone got in. They all went back to Gigi's apartment for the night," the eyewitness told E! News.

Earlier this month, Gigi and Tyler were spotted on their first date in NYC, shortly after the 'Bachelorette' runner-up was photographed spending the night with Hannah Brown in Los Angeles. However, amid speculation about his relationship status with Hannah, Tyler has been spending more time with Gigi.

"There is a connection there for sure. Gigi was smiling more last night than she has in a while. She just looks really happy and calm with Tyler around. It's like she is herself around him, no pretense or act," a source told E! News.

Another insider told E! News, "Tyler likes Gigi and definitely wants to keep seeing her. He wasn't sure if it would turn into something but they are having a lot of fun and don't want it to end, that's for sure."

"They are seeing each other a lot and texting all day long. He's excited about her," the insider added.

According to a source close to Tyler, he is "very into Gigi and wants to keep dating her."

Hadid previously dated singer Zayn Malik but has kept the doors open for Cameron.

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